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Going Beneath the Surface: Petroleum Pollution, Regulation, and Health

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  • Michelle Marcus

Abstract

This paper quantifies the health impacts of petroleum leaks from underground storage tanks, the effectiveness of tank regulation, and the role of information as a policy tool in the same setting. Exposure to a leaking underground storage tank during gestation increases both the probability of low birthweight and preterm birth by 7–8 percent. Compliance with regulations requiring the adoption of preventative technologies mitigated the entire effect of leak exposure on low birthweight, and information increased avoidance and moving among highly educated mothers. Back-of-the-envelope calculations suggest the health benefits of preventative regulations exceed the upgrade cost to facilities.

Suggested Citation

  • Michelle Marcus, 2021. "Going Beneath the Surface: Petroleum Pollution, Regulation, and Health," American Economic Journal: Applied Economics, American Economic Association, vol. 13(1), pages 1-37, January.
    • Handle: RePEc:aea:aejapp:v:13:y:2021:i:1:p:1-37
    DOI: 10.1257/app.20190130
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    Cited by:

    1. Marcus, Michelle & Mueller, Rosie, 2024. "Unregulated contaminants in drinking water: Evidence from PFAS and housing prices," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).
    2. Hongshan Ai & Xiaoqing Tan, 2021. "A Literature Review of the Effects of Energy on Pollution and Health," Energy RESEARCH LETTERS, Asia-Pacific Applied Economics Association, vol. 2(4), pages 1-5.
    3. Syed Hasan & Odmaa Narantungalag, & Martin Berka, 2022. "No pain, no gain? Mining pollution and morbidity," Discussion Papers 2203, School of Economics and Finance, Massey University, New Zealand.
    4. Hill, Elaine L. & Ma, Lala, 2022. "Drinking water, fracking, and infant health," Journal of Health Economics, Elsevier, vol. 82(C).
    5. Butts, Kyle, 2023. "JUE Insight: Difference-in-differences with geocoded microdata," Journal of Urban Economics, Elsevier, vol. 133(C).
    6. Hongshan Ai & Xiaoqing Tan & Zhen Xia, 2022. "RETRACTED: The Effects of Environmental Regulations on Medical Expenses: Evidence from China," IJERPH, MDPI, vol. 19(13), pages 1-17, June.
    7. Kyle Butts, 2021. "Difference-in-Differences with Geocoded Microdata," Papers 2110.10192, arXiv.org.
    8. Bruno, Ellen & Hadachek, Jeffrey & Hagerty, Nick & Jessoe, Katrina K., 2022. "Unintended costs of climate change adaption: Agricultural wells and access to drinking water," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322241, Agricultural and Applied Economics Association.
    9. Shobande, Olatunji A., 2023. "Rethinking social change: Does the permanent and transitory effects of electricity and solid fuel use predict health outcome in Africa?," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).
    10. Hadachek, Jeffrey, 2022. "The cost of nitrate pollution in drinking water," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322249, Agricultural and Applied Economics Association.

    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels
    • L78 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Government Policy
    • Q35 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Hydrocarbon Resources
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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